Chapter5cocacola

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College : SNJB’s COE, Chandwad. Class : MBA 1 st year. Guidance By : Hon. Prof. Mr. U. S. Kasar Sir. Company : The Coca-Cola Company. Presenters : Gaziyani Md. Hasnain Rahul O. Bhandari Khushbu Mutha

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Transcript of Chapter5cocacola

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College : SNJB’s COE, Chandwad.

Class : MBA 1st year.

Guidance By : Hon. Prof. Mr. U. S. Kasar Sir.

Company : The Coca-Cola Company.

Presenters : Gaziyani Md. Hasnain Rahul O. Bhandari

Khushbu Mutha Abu Swaleh Bhagyashree Mankar

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Scam Overview

• The Indian government forced Coca-Cola out of the country in 1977.

• The company returned in 1993• Each bottling plants extracts up to 1.5m

liters of water everyday from the ground.• It takes nine liters of clean water to

manufacture a liter of Coke.• In 2000 Coca-Cola opened a plant at

Plachimada, a village in Kerala to produce 1.2m liters of coke every day.

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• The conditional license granted by the local Panchayat authorized the use of motorized pumps

• But the company drilled more than six wells & illegally installed high-powered electric pumps to extract millions of liters of pure water.

• The level of the water table fell from 45 to 150 meters below the surface.

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• The company started dumping waste outside causing a serious health hazard.

• The court gave Coca-Cola a notice to cease water extraction

• The theft of water was not only limited to kerala • Overexploitation of groundwater soon started in

Kaladera

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Kala Dera - Thirsting from Coca-Cola

• Kala Dera is a large village outside the city of Jaipur.• Agriculture is the primary source of livelihood.• Coca-Cola started its bottling operations in Kala

Dera in 2004, and within a year, the community started to notice a rapid decline in groundwater levels.

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Unusable Well in Kala Dera Showing Depleted Water Level

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• For farmers, loss of groundwater translated directly into loss of income.

• For many children it meant leaving schools to provide a much needed helping hand in household since the women had additional burdens.

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Community response

The community in Kala Dera organized itself to challenge the Coca-Cola company for the worsening water conditions - through extraction and pollution - and demanded the closure of the Coca-Cola bottling plant.

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Company's Response

The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the increasing local community opposition

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Stop Using Groundwater in Kala Dera

The assessment noted that the plant's operations would continue to worsen water situation

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Coca-Cola's Response - Unethical and Dishonest

• Coca-cola took seven month to respond

• Coca-cola not respond to the concern raised

• Unethical and dishonest campaign

• Chosen to continue the operation

• Continued in misery of thousand people

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Coca-Cola should no longer utilize the overexploited groundwater resource in Kala Dera

1. Transport water from the nearest aquifer that may not be stressed

2. Store water from low-stress seasons

3. Relocate the plant to a water-surplus area

4. Shut down this facility

The community in Kala Dera welcomed the recommendations and waited for company’s response.

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COKE’S Corporate Social Responsibility - A Scam?

The Coca-Cola steps up its corporate social responsibility announcing to the world that it is a “green and socially responsible company.” --- but was not the case at kala dera

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• The company announce its rainwater harvesting initiatives in India

• It also announce that the company will become "water neutral" in India by 2009.

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Some serious concerns about Coca-Cola's claims on rainwater harvesting

• The company announced that it has recharged five times the amount of water it has used.

• When asked to back it up with numbers, Coca-Cola does not provide any.

• Coca-Cola states that they "will install measuring devices that will verify the amount of water recharged."

• If they do not have measuring devices installed to verify the amount of water recharged, how can they make a claim of recharging five times the water that they have extracted?

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• People across Rajasthan are well known in rainwater harvesting and have been harvesting rainwater long before Coca-Cola started.

• Coca-Cola started rainwater harvesting to overcome response to the growing campaigns against its water mismanagement.

• Coca-Cola was bluffing people with its rainwater harvesting.

• The rainfall in the area is too low, and the amount of rainfalls fluctuates a lot contributing to 30 days of rains every year

• 80% of those rains come in just two or three days and hence rainwater harvesting is simply not efficient

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• Based on their rainwater harvesting initiatives Coca-Cola company has announced that they will become water neutral in India by 2009

• Coca- cola will recharge more water than the use from the groundwater resource. ---A BLUFF

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Coca-Cola Threatens Top Indian Photographer with Lawsuit

a billboard by : Mr. Haksar

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• In 2005, Coca-Cola's Indian subsidiary, sent a letter to Mr. Haksar threatening him with serious legal actions unless the billboard was replaced 'unconditionally and immediately'.

• Coca-Cola would seek Indian Rupees 2 million (US$ 45,000) for "incalculable damage to the goodwill and reputation" of Coca-Cola, and also sought an 'unconditional apology in writing'.

• Mr. Haksar said that he had no intentions of

issuing any apology because he has not committed anything wrong.

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THANK YOU